2014: the year of foresight

The variety of data, what is done with it, and how the results are accessed are three areas where there will be the biggest transformations in 2014.

While 2013 saw discussion around data volumes and analytics, 2014 will see the execution of these strategies.

Key trends are emerging that make 2014 set to be the year of foresight; enterprises will actively seek deeper levels of understanding of their data, together with a level of predictability, to enable their business to grow.

The nature of data collected by companies is changing, and these changes will become more evident in the year ahead. Companies have moved beyond traditional, transactional type data to streams of data continuously emanating from machines, equipment and vehicles.

It is termed the 'Internet of Things'. Sensors on machinery and equipment are transmitting figures every second; these range from trucks on a mine to cash safes on a garage forecourt. In addition, there is a growing awareness of the information contained within third-party data; companies are being forced to look outward, to their broader environment, including the likes of social media.

While companies understand the potential value of this data, the difficulty most face is accessing, managing and processing it. The volume, diversity and structure of all this new data are challenging for traditional technologies to handle, forcing new data architecture to replace the traditional platforms.

Pressure will be placed on executive-level personnel to take companies from hindsight to insight to foresight, to enable them to compete in the current economic environment.

To remain competitive, it is no longer acceptable to manage the 'average', whether a marketing campaign, a claims process or a forensics investigation. In departments across organisations, there is a desire to implement solutions that produce 'evidence' as to how customers will behave. For example, who will respond to a campaign, who will lapse on their premium payments, who will leave for a competitor and which claim is fraudulent?

This level of insight and predictability is only available through the use of predictive analytics, and the leaders who have embarked on the journey are experiencing staggering return on investment of as much as 200%, and a payback over as little as four months.

Pressure will be placed on executive-level personnel to take companies from hindsight to insight to foresight.

Analytics evolution

While many other companies are discussing their analytics strategies, they often do not know where to start and many face the challenge of a skills shortage in this field. Drawing actionable business insights from data requires a combination of statistical and mathematical skills coupled with industry experience. No one person is likely to have this diverse range of skills, and so enterprises need to look to a multidisciplinary team to drive their analytics strategies.

In 2014, leading enterprises will build automated decision engines, based on the output of predictive analytics. The industry leaders will move from operating on gut-based decisions to evidence-based decisions.

Employees and consumers expect to get information when and how they want it. No one would do a search on Google and expect - or be happy - to wait three weeks for the results. Why, then, do so many companies expect their decision-makers to wait for weeks for a report or for the results of a query? Employees are demanding self-service functionality that empowers then to access, analyse and report on data as and when required.

These requests are putting pressure on IT departments who often have a backlog of demands and are unable to access the required data and reports in an acceptable timeframe. Self-service will be increasingly important in 2014, and tools will be selected on their user friendliness and speed of delivery. IT's big challenge will be to offset this against regulatory requirements, data privacy, security, and access to data.

There is a major shift towards evidence-based decisions, automation of decisions and real-time implementation of those decisions.

In companies that are just not sure where to begin, consulting with experts will become crucial. Companies will also need to drive a cultural change, starting from the most senior levels.

But, the returns are potentially huge, so companies cannot afford to delay their journey.